CSA action plan focuses on advisors, disclosure requirements for ETFs

CSA action plan focuses on advisors, disclosure requirements for ETFs

CSA action plan focuses on advisors, disclosure requirements for ETFs The Canadian Securities Administrators have released an action plan with objectives the organization intends to pursue over the next three years, with enhanced disclosure requirements for ETFs, a possible ban on commissions and a best-interest standard for advisors topping the list, according to an Insurance Journal report.

The CSA intends to implement new requirements to ensure investors “can rely on rules and regulations that provide them with clear and relevant information to make informed decisions, that only properly authorized persons provide investment services to the publice, that their obligations toward their clients are well understood and aligned with their clients’ interests, and that market intermediaries are properly supervised.”

According to the Insurance Journal, the CSA intends to implement requirements for a point-of-sale disclosure for ETFs. The organization is also considering ways to deal with conflicts of interest arising from embedded commissions, the Journal reported. Regulators plan to consult with stakeholders on whether embedded commissions in investment funds “should be addressed to better align the interests of investment fund managers and dealers/representatives with those of the investors they serve, and implement a regulatory proposal as appropriate,” the CSA action plan stated.

The CSA is also planning to hold public consultations on whether it should formalize advisors’ duty to always act in their clients’ best interests, the Journal reported.
 
4 Comments
  • NPG 2016-07-12 11:22:21 AM
    It is impossible to have a law that says advisors have to do what is in the clients best interest. As soon as an advisor charges even a low fee the client could say that is too much. Even if an advisor was paid $2,20 per hour , the client could say , it is in my best interest if the advisor worked for $1.00 per hour. How do you implement that.
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  • NPG 2016-07-12 11:26:24 AM
    You can't implement rules stating that advisors have to act in the clients best interest.
    If you do the next thing you have to have is something that tells you best interest of the clients in who's mind, the client, the regulators, the advisor who? Because if it's the regulators, and an advisor decides to charge $3.00 per hour , the regulator could say it would be better for the client if he charged $1.00 per hour. who decides what the best interest of the client is. I'm not being sarcastic.
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  • Jim Burke 2016-07-12 4:02:35 PM
    Regulators run wild!! CSA according to their website 13 appointed lawyers with no industry experience making up asinine rules with no accountability to the public or the advisors that pay fees to their securities commissions. Costly unnecessary rules to make them look like they are doing something. Who regulates the regulators in the CSA . How many trees have been sacrificed to fulfill requirements for crazy disclosure that nobody reads?
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